tv Best of Bloomberg Technology Bloomberg February 26, 2017 9:00am-10:01am EST
♪ cory: i am cory johnson, and this is the "best of bloomberg technology" where we bring you the top interviews from the week in tech. coming up, snap hits the streets with its ipo roadshow and faces investor concerns. the problem with snapchat's growth ahead. plus, tesla pops the hood, falling vehicle sales. and, our exclusive interview with arm holding's ceo. snapchat kicked off its roadshow ahead of an ipo.
red herring disclosed slowing user engagement and rights treatment. joe siegel is a portfolio manager. >> i think anything at $20 billion, you have to justify the valuation. here, the questions are around user growth. i think they danced around the issue of user growth, alluding to issues of the android. monetization they touched on lightly, but as the story progresses, you will need to see more metrics. cory: we were joined for more. >> we were outside the mandarin oriental today trying to grab investors to hear their take. to their point, when asked what was your big takeaway still on
your mind, user group was a lot of what the investors said to us. the executives blamed it on android, but i heard a lot of instagram being called out by investors who point to the stories feature instagram recently introduced that very much mimics snapchat. others brought up the new whatsapp feature rollout. you can send images that mimics snapchat. yes, snap is pointing to internal issues, like needing to build out on the android platform in non-core markets, but investors question the competition factor, and it will be on their mind when they are running comps. cory: the "monetization issue" is a euphemism if there ever was one. tons of people are using snap, not tons of people are generating revenue for snap.
what do you think of the monetization pathway for this company? >> i think the underlying opportunity for snap is around the data and the audience. as you know, they skew to a much younger audience. it is a content creating machine, and tapping into that and targeting that audience, and being able to use that data more effectively than their peers is where the opportunity lies. cory: is advertising the only real opportunity for these guys in terms of revenue? there's nothing wrong with an advertising-only model. it's the history of media is mostly about that. >> that has been the historic approach. there are different ways you can monetize around what you are calling advertising, very targeted marketing, and marketing dollars are getting more and more segmented, so a larger opportunity will be around using that data. and selling that data to a whole host of different applications. advertising been the largest
bucket and then going down from there. cory: the valuations here for this business are outstanding. -- astounding. for any business, not based on the lack of profitability but the lack of margins. the most basic concept of business is to sell something more than it cost, but that is not what snapchat does. did you get a feeling this would be a good business or bad business, but a very high price. -- did you get a feeling this would be a good business or bad business, but a very high price? >> it is a very high price. >> a few noted that we did see the price come down. they were looking at valuations around $30 billion to $35 billion, so expectations have come down as more information about the company has come out, so when you look at where they are spending money, the profitability factor is the next step for them. they talk about that as phase three. phase one was development, phase two is user growth development, and phase three will be profitability. the biggest cost is their technology infrastructure. there was conversation around that today. the company says it expects the
cost of infrastructure to eventually decline as google cloud and amazon compete on pricing. it also says it is open to building its own infrastructure, so a bit of new commentary around that right now, and that is important because that is the bulk of their expenses right now, and outpaced revenue. cory: i bet you would have no complaints if any of your investments could go public at 17 time sales. >> that is an awesome number. i think they are banking on that monetization and taking advantage of the massive amount of users and content. it is up to them. it is their game to prove that out. it is common for startups to prove that out in the public markets where they feel they can build predictability into their business, and that will be the name of the game. investors care about
cory: u.s. tech giants continue to face regulatory hurdles, and this time it is microsoft, facing european privacy probes for windows 10 even after making changes. regulators from seven countries are concerned that microsoft is failing to meet fundamental privacy requirements. microsoft says it will continue to cooperate. still ahead, elon musk delivered a mixed bag amid sprawling vehicle sales, declining gross margins, and a nearly $1 billion cash burn. all the details ahead. all the episodes of bloomberg technology are live streaming on twitter. check us out at @bloombergtechtv, 5:00 on wall street, 2:00 on the west coast. this is bloomberg. ♪
speaking of earnings, tesla ceo elon musk, a mixed bag for the fourth quarter. he says the mass-market model three car will arrive, and the first ships in july. tesla could be out of money by then. they have $3 billion in the bank. they plan to spend $2.5 billion by june in capital expenditure. musk also announced cfo jason wheeler is leaving the company after 15 months on the job. here he is on the quarterly call. elon musk: first of all, i would like to announce that our cfo jason wheeler has decided to leave tesla in april. he will pursue opportunities in public policy. jason will be replaced as cfo. cory: musk says initial production on the mass-market model three electric car are on track for the second half of 2017, but with cash burn accelerating and losses mounting, how long can combined tesla and solarcity go before diluting shareholders? >> i don't think it is so much of a concern because they are in the capital investment mode and still ramping up production of the model three. they will build gigafactories and ramping up the production of
the solar shingle. this is a capital investment story. if you believe in the story, you want to see them invest capital in the company. cory: if you've got -- i'm not good at math, but if they got $3 billion and they burn through $1 billion a quarter, this is not a pretty story a year from now unless they sell more stock or borrow more money. >> they will probably go back to the capital markets again sometime between the spring in the summer, as they have for the past two years because manufacturing cars is a capital-intensive business, and this is a company in its investment and build out stage. they are ramping up production of the next model, the model three.
they are still building out their dealer network, and they are ramping up production of the new solar shingles. cory: you mentioned. michael, talk to me about what you see in this quarter for tesla. >> a couple of questions, first of all, how well have they integrated solarcity and what are the benefits that will come from the integration of solarcity? will they get at costs? with they be able to sell more of the shingles? and the second thing is, some of the other services they are talking about, whether it is ridesharing or autopilot, how quickly are those going to roll out? that is part of what people are looking for, not just the equipment, moving the metal, but other services that will be internet based and technology-based. cory: ivan, what is the biggest risk to the stock? if you look at the stock price of the last year, it is not as
exciting if you look at the last six months or 3-4 months. what do you think the preeminent risk is for this business? >> that there would be a softness in sales for the model three and overall softness and all the vehicles. so the risk is the public stops buying teslas, but so far the demand has been strong and delivery amounts have been hampered by production and not demand. cory: let me push back on that. in the last seven quarters, four of them has seen sequential declines from vehicles sold, so it does seem the model s is still selling, but they sold fewer in the third quarter than the fourth quarter. >> i think the demand and production is still strong, and they are still strong in anticipation of the model three. the model three will be the game changer for them because it moves them from a niche carmaker to a mainstream carmaker, and the number of model threes projected will significantly exceed those of the x and s together. >> the jury is still out on whether they can sell enough model threes to become profitable.
up to now, they have been a luxury car. going forward, the question is whether they can turn to the mass market, especially as the big automakers will be in this business big-time also. >> i do agree. cory: they have lost money on every sale. if there are the same net margins for the model three as the model s, making a lot of cars will be bad for them, not good news. >> that math is not correct. they do not lose money on every car. cory: sure they do. >> they sell for $80,000 and cost $84,000 to make, it's not like that. cory: gross margin, but not the operating margin. >> and that is capital investment, so they are not losing money on the sale of the car. if you look at the gross margin on sales for the big automakers,
ford and gm, they are trying to get to 10%. the gross margin on the publicly traded retailers like autonation is also 10%. you put that together, that is 20%. tesla is exceeding that because they are the manufacturer and retailer. they have a gross margin on the sale of the car of 22%. the losses are coming from the capital investment. they are investing in the buildout of each model line and now the model three and the buildout of solarcity's solar shingles. cory: as you mentioned, the models are different, so the gross margin is affected by that. the operating margin, research and development, marketing costs, that is why the company has never made a penny, so in fact it is not profitable, but we'll say they are continuing discussions to another day. michael, when you look at this company, are you inspired by
with what the company makes and what they are doing? or are you discouraged by the continued cash flow losses and operating profit losses as well? >> the biggest concern around this company is whether or not they will be able to long term charge a premium for their vehicles and whether or not as they expand production they will have enough margin in each vehicle to make money once they take account of their capital investment as well as their individual production selling costs. cory: right, ivan, let me give you the last word. there is so much to chew on this thing. >> as i was saying, if they were losing money on the actual sale of the car, where the cost to produce the car was greater than the sale price, that would be bad, but it is positive. they are investing in r&d, marketing, and the factory, and the gigafactory, because the biggest constraint of the electric car is battery technology, and they have
invested in a number of technologies, battery technology, aluminum welding technology, so if you look at this ramp up, it is not unusual for a company to invest money, especially a capital-intensive business like auto manufacturing, and not make money for a number of years, but demand is still strong for the car. i think there will not really be competition between other electric cars. i think the competition will be between electric cars and gas cars, because still tesla is not really an electric car. it is a high-performance, luxury car that happens to have an electric drivetrain, so i think people looking at the performance and the luxury and technology features is what is driving the purchases. cory: coming up, cisco's chairman puts his weight behind a company that provides phone security. why voice fraud is a $10 billion problem just in the u.s.
cory: another twist in the insider trading case of billy walters. u.s. prosecutors will allege he made $43 million on inside information, and they will have to show he had a history of trading in apple in 2013. prosecutors have yet to reveal the details, but walters was indicted last year for trading on tips fed to him by tom davis. steve jobs presented the plans for an new ring-shaped campus, the last public event before his death, now apple says it will start moving into that facility in april. the opening day had been set for 2015, but apple face budget overruns and delays. the cost is said to have hit as
much as $5 billion, but a 1000-seat auditorium in the building will be named after steve jobs. the call center business, phone calls, billions of dollars, stock transfers, product purchases, but also one of the fastest growing forms of cybercrime. pindrop is fighting phone fraud. we spoke to cisco chairman john chambers and the ceo of pindrop. >> the business where they are asking you questions to identify yourself is a really bad idea. one, because it frustrates you. it doesn't catch very much fraud. right now in the u.s. alone, they are losing $10 billion to voice fraud, and even more so -- yeah, $10 billion a year, because every single call -- when we started the company, one in every 2000 calls was fraudulent, now it is one in
every 900, so there are so many calls coming into these call centers because what they have realized is that people secure the online and physical side, but it is the easy thing to pick up a phone and get them to do your bidding. these call centers are about customer service, so they are not catching the fraud. all these questions are translating to in additional $12.8 billion asking people stupid questions. cory: how big is this business? john: it is big in terms of the opportunity. you think about the $22 billion being spent on fraud or fraud prevention, and it upsets customers. you think what the real takeaway is. tt will become a digital world. this is the company that would lead in security and authentication, so it's not just about how you prevent fraud. they detect 80% of fraud calls with less than 1% false positives. almost every major security breach you read about, 61% started with the a voice call into the company. cory: i would imagine your job
is to create jobs at pindrop, but take calls away from the call centers. >> it empowers call-center agents to do their job better. they are treating everyone who comes to them like a criminal, so now for 99% of the calls they can treat you with a wonderful customer experience, and for the 1% that is not good, they can treat those fraudsters. if you have a wonderful customer experience, you will call back with your smart phone or your standard phone, and when you're making all of those calls, because you make those calls when you really are in need of -- if you have a wonderful customer experience, you will call back with your smart phone or your standard phone, and when you're making all of those calls, because you make those calls when you really are in
need of something by giving people a great customers experience, you will get them to come back over and over again, which means more jobs. cory: how many times have you been to the white house in your life? john: probably 30 or 40. cory: that's what i figured. you know how that place works better than any other ceo in silicon valley. i wonder what you make of the trump administration and the approach to business. john: let me first say that when you set a goal 4% gdp growth and a goal of 25 million to 30 million jobs, attainable. oddly enough, the role models are india and france. the prime minister of india is focused on 1.1 million jobs a month, growing at 7% gdp, and he thinks he can grow at 10%, that means the per capita income doubles every 10 years. france, refocused cisco two and
a half years ago, they realigned and digitized in the country. guess what was the top venture capital investment location in europe all last year? it was france. the large companies will shed jobs unfortunately around the world, so all job growth will be from the startups, and instead of doing 90 on the nasdaq and 35 on the stock exchange, we need to do three to five times that to get the growth we need. that is why companies like this are creating jobs. it will be a job creator for the future and a great investor when it goes public. cory: we shouldn't be talking about carrier and ford and united technologies. >> i think it is important to retain the jobs we got and i think the administration is right, doing a good job on it, but in terms of creating 25 million new jobs, all startups. i'm talking to the ypo group
once year at their meeting in vancouver, and it will be all about their job growth. when you are looking at startups growing 100% and the number of people per year, that is what we have to do at a larger magnitude going forward. he set an audacious goal, and then you think about how to make it happen. what is fun for me is being an advisor, a great industry where they should leave their industry in terms of being the top security player, anywhere you have a question on voice. but also their ability to go through the transitions. now you're talking about voice going digital, and what this company is positioning themselves to do in terms of security and authentication is really exciting. cory: coming up, our exclusive interview with arm's ceo simon segars next. and if you like bloomberg news, check us out on the radio.
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cory: welcome back to the "best of bloomberg technology". i'm cory johnson. apple is weaning itself from developers and developing its own chips that use technology from arm holdings. the leading semiconductor firm sells and licenses to dozens of company, but also qualcomm and samsung. it was bought by telecommunication giant softbank for $32 billion last year. we spoke with the ceo simon segars. simon: we are still focused, working with our partners, developing next generation technology used in all sorts of devices from smartphones to microcontrollers in washing machines, so it is business as
usual for us. cory: what about the other ways? what is different? simon: we are now to think in a much longer term about investments we make in new emerging trends for technology, how they're being used, and spend more time thinking about long-term strategy than we could before, so it is business as usual in terms of execution, but in parallel with that how people will use technology and what that will mean. cory: president trump took notice of it. i wonder what that means for arm. does arm end up working with other semiconductor firms? simon: there are some operating companies that have. typically those investments have been things which have helped
grow the business as a whole, so my expectation is that money will be put to work in a fund that will return value for investors in it. it will be technologies around the kind of things we do. cory: over the last 10 years, arm has captured the tiger by the tail when it comes to smartphones. the business has really grown. what do you see happening to the smartphone business right now? simon: from a perspective of handsets, the growth rates have tailed off, but there is still a lot of innovation within handsets. the computer performance is going up year after year. we are a few years away from 5g technology, which will enable higher data rates. cory: what is your expectation on timing there? simon: 2020 or 2021. that will ignite new use cases, how people are using phones,
applications, and will keep the whole industry innovating. cory: as you look at this business as it grows, do you expect -- intel for example has made commentary around the internet of things. i wonder if you see that is a necessary thing to jumpstart. we are seeing lower sales of pcs, declining tablet sales, longer time between the refresh of the smartphone. simon: when i talk to our customers and the ceos of semiconductor companies we work with, there are many who look at the growth in cars and iot as big drivers for their business in the future. there are industries maturing, other things taking off. right now, those two sectors particularly stand out as driving innovation and future revenue growth. cory: looking beyond, you talked about the relationship with apple. what is it like to work with a company like that? simon: as with any successful
company, they want you to keep executing. they want you to keep investing, and we have many customers like that. cory: when you look at the plans for intel for capital expenditures, going down to unimaginably thin wafer size. do you see that is your biggest source of competition, because they are able to drive that sellers into that business? simon: intel is a significant customer of ours and we are working on deploying that technology. there are the other licensees, and we've been working with them for some time on that. the overall semiconductor industry is pushing towards advanced geometries that will enable more performance, better energy efficiency, so we can all have more and more powerful devices.
cory: that was arm's ceo simon segars. meanwhile, verizon continues to try to take the lead in 5g. the nation's largest wireless carrier will test service in 11 markets in the first half of this year. those faster connections will help verizon offer internet speeds competing with internet providers. -- with cable tv operators. 5g will not be commercially available until 2020, but makers will spend a collective $200 billion. still ahead, we sit down with square's cfo and the company's strong q4 earnings. last year, the gaming business saw $30 billion in m&a and investment. it is a big business, but how did these companies make money? we will dig into the economics of videogame apps, next. this is bloomberg. ♪
week. for jack dorsey, it is a part-time job. unlike his other company, twitter, square has seen some big gains, sales of 20%, payment volume up 30%, but how long can the company grow like this? we sat down with square's cfo. >> it has been great to see the company go from how to take a payment into a complex managed payment solution. they slowly pulled us into becoming a point-of-sale solution for them. what i really think about was the commerce platform. we started to build new products on top that play to our unique advantages. square capital plays to the fact that we have access to data that allows us to manage risk, and that is just one part of the cohort of products that comprise a quarter of our adjusted revenue, so lots more to do there. we can can continue to grow the core, move upmarket, starting to shift from off-line to online for our platform, and we can
take all of that and go global. it is exciting to see how that will drive growth. >> i think investors are excited about that whitespace that shows more profitability, and we saw a huge jump in ebitda margins. from negative six last year to 16%. how much higher can that number grow, and where would most of that increase in profitability come from? sarah: we want to be mindful of growing the business, but also expanding margins. it is clear we think about mid-single digit market expansion pace from here. that is the right balance of taking back into the business the other profits we are throwing off and invest them
into growth. in terms of where that margin expansion will come from, will see topline outperformance, like the quarter where we beat top-end guidance by $7 million, that clearly impacts profitability, but beyond that, we want to get more efficient, i think in particular, areas like g&a. clearly, we did a big build when we went public, and we are reaping the benefits of that, but we don't need to continue building at that same pace. automation is important for our sellers, and we want to put that into the products that they use, but it is very important internally to use automation to make ourselves more efficient. machine learning in risk, machine learning and ai in sales and support, so lots of opportunity there, and i think that will grow the margin profile. >> you mention margin expansion -- global expansion as a key point. you are in japan, australia, the u.s., and canada, but still largely a domestic business, the vast majority of revenue from the u.s., so what can we expect the pace of global expansion to look like? >> for us there have been huge opportunities in the u.s.
when you are a business that goes after commerce -- that said, a huge stride forward for square in 2016, the end of 2015, was getting our hardware platform to a point where we could globally accept payments. what i mean by that is taking chip and contactless transactions. we did not have to have it here in order to be able to take electronic payments, but now that we have shifted to a world of chips, and more importantly getting the u.s. contactless, we have created hardware that unlocks the rest of the world. my hope that will help us move faster. >> as you are evaluating m&a opportunities for international expansion, how much of that is going into consideration for
accelerating expansion? sarah: we have historically not done a lot of m&a. when we have done it it has been to drive a product beyond where the current roadmap is. caviar is a great example. we have said we have a roadmap for how to provide a commerce platform for restaurants, but we will leap ahead and also do deliveries because deliveries will bring more sales. i think other m&a has been about adding talent into the mix, typical of what a silicon valley would do to get great engineers and scientists, so i think it will be more of the same for us. i don't want to say that we would not use m&a to do something really big. we are always looking and if something came our way that accelerated the business, we would absolutely do it. just right now i don't see something on that scale on the horizon. >> square was one of the many tech companies this month to sign a legal document condemning
president trump's executive order. how do you foresee developing legislation in this area potentially impacting your sellers, which are very diverse? sarah: the amicus brief was important for us to sign. we feel strongly that immigrants have brought a lot to this country, and in particular to our sellers. these are the people who found businesses, work at the businesses, and small businesses are the lifeblood of an economy. cory: that was square's cfo sarah friar. we also talked about fitbit earnings on wednesday. revenue for the struggling wearables maker were down 19% year over year. >> fitbit already dropped the bomb last month when they pre-announced they would miss earnings and be cutting 6% of the work force. as you said, revenue dropped 20%. they already have the bar set very low, but even then, they barely met those expectations and missed on some metrics as well.
their outlook also was not pretty. cory: a big decline in sales, but they still seem to command market share. when you see a company like this that has sales down, but margins are still very strong. competitors are leaving the space, maybe leaving them more runway, and i wonder what you make of that when you look at this business with declining revenues, sustainable margins, and competitors falling away? >> first of all, the product is superior because it is simple. people want to use it because it is simple. second of all, like every other consumer electronics company, they need a next wave of innovation. when they come out with a new product they give consumers a signal it is time to buy, so i do expect as other competitors
have gone away and the more expensive wearables are really not as interesting to consumers, i think this company will continue to grow and go back to a growth trajectory. cory: what, how are they feeling on the call? are you sensing that optimism? >> the call is still ongoing. they are saying they will look to new form factors. they need to innovate, come out with new products. in q4, it showed that consumers are looking for something that is a bit more sophisticated, and that is why they are focused on integrating some of their acquisitions so that they can come out with a new product to generate more demand. another interesting part was james park again emphasized the push for his digital health strategy. they want to continue to integrate into the health care community. he gave an example of their data feeding into a glucose monitor so that data is being fed in that. -- directly integrated into that. he wants to get more revenue from those types of partnerships. cory: coming up, how trump's visa changes could affect the biotech industry.
cory: the gaming industry gearing up for next week's gaming developers conference in san francisco. it is a big business, $30 billion in investment and m&a last year, but how does the business really work? >> it is about building a good game, but it is not just enough to build a good game, and that is why you have seen a lot of game companies fail. they have not had that pull, that reason. at the same time it is a good game, longevity, multiple levels that keep coming back. it is about the install, and about the longevity. cory: there is a license fee
there, and the license fee is surely not small. i wonder, again, come back to unit cost. where are the economics in this? where does the revenue come from? how does the repeat revenue happen? >> that is the key to building a great game, unlocking the monetizeable units. in their case it is about the virtual goods. inmost cases it is about virtual goods, and that's why games are the largest revenue driver within the app store for apple. cory: is that also a whale business where you have 5% of the users paying 90% of the revenues? >> yes.
there are few consumer media companies that don't generate their business from that top 10%, 20%, and we focus on that. you will see that as we shift to the next platform, which will eventually be virtual reality. cory: i want to find the person spending $50,000 a year playing the kim kardashian game. that person exists out there somewhere. to that point, what is the special sauce? you suggested the licenses the special sauce. if that's all it is, it's not very special. >> it is very special, because some of these licenses are extremely viable. in the marvel case, obviously. in the transformers case, they are. cory: you have locked that down.
>> we have locked that down within certain ip. on the other hand, there are fantastic games that don't have third party ip and can be incredibly valuable. it is just that right now -- cory: with candy crush? >> that's right. there is a huge concentration and it is difficult to penetrate that now because games are such a competitive ad sales market. it is highly expensive to buy those installs. cory: as a venture capitalist, you find these guys can make an investment, inspired the genius they come with naturally, but how do you try to find other investments of this sort? >> gaming is an incrediblely difficult market. the story is a story inside a story inside a pivot. the relationship with the entrepreneur was incredibly important, but that level of trust we had with the ceo was frankly a key part in continuing with the company until they reached that successful point, which they did. in gaming generally, it is incredibly difficult from the
get go to predict success, which is why game companies only get venture financed once they have reached some sort of success metric. unlike the movie business, it is not one that dies off after a weekend of success. it can continue for years and years and years. cory: do you need therefore to sort of use venture capital for spray and pray, lots of releases because you don't know which one will take? or do you have to focus, stick with a couple of games to really make sure they are good because they need to be that much better than the average game? >> that is what has changed in the market in the last several
years as the app store has become concentrated and congested. you really need those big, big heavy franchises, marvel, candy crush, any of the ones the top 10. cory: kim kardashian. >> what ever. so it is about building the megahit, not assuming you can build 10 ok hits, because you can't afford anymore -- cory: is that because development costs have gotten so high? >> development costs have gotten high, and install costs have gotten high, and that is how the leverage of a third-party ip can come into play. it can artificially bump you up because that property, the marvel property, the transformers property is so exciting. cory: now to biotech, from tiny startups to global giants, a $324 billion industry in the u.s., and they are increasingly alarmed on donald trump plans to restrict immigration. we report from the biotech hub
in cambridge, massachusetts. ♪ >> to crank out discoveries, u.s. biotech companies rely on the world's best scientists and researchers. >> there is confusion and uncertainty, and confusion and uncertainty are never good. >> the co-founder at labcentral, a biotech incubator in cambridge, massachusetts. >> i came here from germany. i am a green card holder. we found that 73% of the companies here were founded or cofounded by immigrants. >> 28,000 square-foot facility of shared lab space designed as a launchpad for startups. >> they work on new technology, new drugs to cure diseases, or medical devices, or could be tools for use in the laboratory.
♪ >> it is threatened by the trump's controversial immigration policies, including possible changes to visa programs. >> i would direct the department of labor to investigate all abuses of visa programs that undercut the american worker. >> the h-1b program allows tens of thousands of employees from abroad to work in specialty positions in the u.s. more than 20,000 pieces were granted in the medicine, health, and life science occupations in 2014. it is often one of the main routes by which employers sponsor staff from outside the u.s. staff like this man, developing a vaccine out of a company based at labcentral. >> there are immigrants in the biotech industry and field, and
having all these additional stumbling blocks would really take them back and really put a stop to some of these key important talents that we need to bring here that would accelerate some of these life-saving medicines. >> for many, it is personal. one employee at labcentral, a british citizen and a daughter of a pakistani immigrant. >> on a personal level, we have four children. we do worry about them in their future in the u.s. with all that is happening at the minute. it is just an immigration ban, but where does it end? how far is is going to go? ♪ >> u.s. bioscience firms employ 1.7 million people. that includes a rising number of foreigners. a draft executive order seen by bloomberg reads "these programs atre to be administered in a manner that prioritizes the protection of american workers."
>> i think it is really a sign that you are going elsewhere to try to recruit somebody because you cannot find someone to fill this job at your company. i don't think it is a real risk that this tool will be used to undercut wages in this country at all. ♪ cory: chief executives of global drug companies u.s. operations criticized the restrictions. astrazeneca ceo told bloomberg that science does not have borders, so anything that gets in the way does not help. >> this has been a big driver for our success in the past. it is important that they maintain that. ♪ cory: that does it for this edition of the "best of bloomberg technology". we will bring you the latest in tech throughout the week, and what a big week ahead. you will want to be here. we will be all over the snap ipo, looking beyond the headlines. tune in at 5:00 each day on the east coast, 2:00 in the west
♪ david: so, what did your family think? did they say that there's something wrong with this young man? he just wants to do computers? bill: it was considered a little strange. david: have you thought how much better your life would be if you had gotten your harvard degree? bill: i am a weird dropout, because i take college courses all the time. david: what about steve jobs in those days? what was your relationship with him? bill: we were both there at the very beginning. david: you are the wealthiest man in the world -- is that more of a burden than a pleasure, to be the wealthiest men in the world? >> would you fix your tie, please? david: people wouldn't recognize me if my tie was fixed. let's leave it this way. all right. ♪